How US Car Gift Tax Works
Gifting a car to a family member in the US works very differently from Korea, where gift tax and acquisition tax are both charged on every transfer. In the US, gifts between spouses are unlimited and never taxed. For other family members, only the amount above the $18,000 annual exclusion (2024) per recipient counts against the giver's lifetime federal gift tax exemption — and federal tax is rarely actually owed since that lifetime exemption is about $13.61 million.
On top of that, most states exempt family vehicle gifts from sales/use tax entirely if you file a gift affidavit at the DMV, so in a typical case your only real cost is the standard title and registration fee. This calculator checks whether Form 709 reporting applies and totals your expected out-of-pocket cost.
Frequently Asked Questions
Usually no. Spousal gifts are unlimited (no gift tax ever). For other family members, only the value above the $18,000 annual exclusion (2024) counts against the giver's lifetime exemption — federal gift tax is rarely actually owed unless their lifetime gifts exceed about $13.61 million.
Most states exempt family vehicle gifts from sales/use tax if you file a gift affidavit, though you'll still pay standard title and registration fees.